Amazon is doubling down on artificial intelligence by investing an additional $4 billion in the San Francisco-based startup Anthropic.
The deal, announced Friday, raises Amazon's total commitment to $8 billion in just over a year.
Anthropic, a competitor to OpenAI and Google, develops foundational AI models that drive advanced systems like chatbots and automation tools.
This deepened partnership amplifies Amazon's position in AI innovation and integrates its cloud computing arm, Amazon Web Services (AWS), as Anthropic's "primary training partner."
Amazon has been rolling out new services to keep up with this year's AI arms race, including updates for its popular assistant Alexa so users can have more human-like conversations and AI-generated summaries of product reviews for consumers.
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As part of the agreement, Anthropic will rely on AWS-designed chips and data centers to train and deploy its AI systems.
These foundational models are the engines behind general-purpose AI tools, including Claude, Anthropic's competitor to ChatGPT and Bard.
Claude is built to engage in detailed conversations, summarize text, analyze information, assist with programming, and provide other computational support.
"We've been impressed by Anthropic's pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration," said Matt Garman, CEO of AWS, in a statement.
Companies using Anthropic's advanced generative AI via AWS include DoorDash, GoDaddy, Pfizer, T-Mobile, and Zendesk.
This partnership offers Amazon more than just an entry into Anthropic's new technologies. Using AWS servers ensures that a portion of Anthropic's operational costs flow back to Amazon, reinforcing its competitiveness in cloud computing while positioning it as a challenger to Nvidia, a leader in AI chip manufacturing.
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The generative AI landscape is crowded, with global tech giants vying for dominance. OpenAI, which secured $6.6 billion in funding in October, now boasts a valuation of $157 billion. Meanwhile, Elon Musk's xAI is seeking investments that could push its valuation to $40 billion.
Amazon's partnership with Anthropic reflects a commitment to outpace its rivals.
However, the profitability of such ventures remains a critical concern, especially for smaller AI firms unable to match the pace of investment.
Many of these have been acquired by industry heavyweights like Google and Microsoft.
Anthropic purports to be doing things differently by creating advanced AI tools while addressing safety concerns that could prevent misuse or harmful outcomes.
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The influx of capital into AI startups has also drawn attention from regulators who are monitoring whether such deals stifle competition.
In September, the U.K.'s Competition and Markets Authority reviewed Amazon's ties with Anthropic but concluded that their combined market share did not justify further investigation under merger rules.
DeDario Amodei, co-founder and chief executive of Anthropic, recently praised Claude's "year of breakout growth." He previously held high positions at OpenAI.
"Our collaboration with Amazon has been instrumental in bringing Claude's capabilities to millions of end users across tens of thousands of customers," he said. "We're looking forward to working with Amazon to train and power our most advanced AI model."
This article includes reporting from The Associated Press.
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